Looking At The Insider Trading Report

I do not own this stock of Brookfield Office Properties (TSX-BPO, NYSE-BPO). In November 2008, I was looking at some shares on the Dividend Aristocrats List that I do not own. The first one I came across was Brookfield Properties (TSX-BPO). I did not know this stock and had not tracked it, so I took a glance at it. Here you meet up with the problem with the Dividend Aristocrats List.

This is the stock was taken off the list since it has not raised its dividend since 2008. This list changes often enough that may make it an unreliable source to find new good stocks and shares. But when I had been looking at it in 2008, many people sensed that the shares on such a list were the best.

  • Health Insurance: $44,049 – $60,948
  • Date: 11/3/17
  • War Disablement Pension, including allowances
  • Be passionate -They need to be passionate and love what they do to be successful
  • Avoid anything with a ‘get wealthy quick’ vibe

Looking at the insider trading statement, I see that a lot of individuals have options, but there isn’t that much share ownership except for a few directors. 6.6M. The biggest shareholder is Brookfield Asset Management Inc., which owns around 49% of the exceptional shares. Taking a look at past history, it appears like the ongoing company paid dividends between 1991 and 1993 and then ended them.

They were restarted in 1997. Every year until 2008 They increased their dividend. Since 2008 the dividends have remained flat. The main reason I could see is that their Dividend Payout Ratios were too much. This is true of DPR for cash flow especially. 12 months was 24 The DRPs for 2012 financial.9% for earnings and 46.6% for cash flow. These ratios are anticipated to be higher for 2013 at 49% for income and 59% for cashflow. Until 2006 the EPS/CF Ratio was below 1.00. Since 2006, this percentage has been above 1.00 except for 2009. This isn’t a good sign.

Healthy companies tend to have this ratio under 1.00. That is, they have less than CFPS EPS. The Liquidity Ratio has been very low and the existing ratio is just 0.39. This means that the current property cannot cover the current liabilities. The Debt Ratio is quite good at 1.89. The current Leverage and Debt/Equity Ratios are at 2.12 and 1.12, respectively and are normal for a real property company. When I take a look at analysts’ recommendations, I find Buy, Hold, Underperform, and Sell recommendations. Most of the suggestions are a Hold and the consensus recommendation will be a Hold.

When I look at Price/Earnings Ratios, I find a very big difference between your 5-year median ratios and the 10 12 month’s median ratios. The former ratios are less half of the later. However, if you go through the dividend yield, the existing dividend yield at 2.93% is some 17% lower than the 5-yr median dividend yield of 3.57%. With this basis the stock is getting expensive.

It is known as expensive when the existing dividend produce is 20% greater than the 5 season median dividend yield. Not a dividend-growth company anymore, so I am not interested in this stock. It looks like it might soon be bought out also, so is not a long-term buy.

See my spreadsheet at bpo.htm. Brookfield Properties is a respected North American commercial real estate company that invests in premier-quality office properties in high-growth marketplaces driven by financial service, authorities, and energy tenants. The profile is composed of office properties in 12 top U.S. Canadian marketplaces. Its website is Brookfield Office Properties here. This blog is intended for educational purposes only and is never to provide investment advice. Before making any investment decision, you should always do your own research or seek advice from an investment professional. See my website for stocks followed and investment notes. Follow me on StockTwits or Twitter.